Car insurance in Newfoundland

Newfoundland has mid-level insurance premiums compared to many provinces in Canada, though it boasts the highest rates in the Atlantic. The relatively low prices it offers for car insurance are likely because you aren’t required by law to include accident or personal injury benefits with your mandatory coverage.

This means that you’ll save money on your premiums but you won’t automatically have coverage to protect you if you get sued for injuring another driver in an accident. This could cause you problems in the long run so it’s recommended that you add this coverage to your insurance even if it’s not a mandatory legal requirement.

Average cost of car insurance in Newfoundland

You’ll pay an average of $1,168 per year for car insurance in Newfoundland (according to a report from the Insurance Bureau of Canada). This number is a rough estimate based on the total amount of premiums collected in the province divided by the number of personal vehicles insured.

Many drivers only choose to get third-party liability coverage to reduce their monthly premiums. This might make sense for you if you have an old or inexpensive car. You may want to consider paying more for collision and comprehensive coverage if your vehicle is worth more. It’s also recommended that you purchase personal injury benefits as an add-on.

These benefits aren’t required by law in Newfoundland but they are in all other Canadian provinces, and for good reason. Without them, you would have to pay out of pocket for medical bills and time off work if you were hurt in an at-fault accident. This could cost you hundreds of thousands of dollars in the long run, depending on the severity of your injuries.

Which city has the cheapest car insurance in Newfoundland?

• St. Johns
• Mount Pearl
• Grand Falls-Windsor
• Gander

Which company offers the cheapest car insurance in Newfoundland?

According to our comparison, the company that offers the cheapest car insurance in Newfoundland is Facility Association. That said, this won’t always be the case and depends largely on the personal factors that you input to generate your quote. For example, you might have better rates with Aviva if you’ve got less driving experience or are under the age of 25.

The best way to make sure you’re getting the best deal is to compare providers using your own personal details. This will make sure that you find the cheapest car insurance that’s tailored to your own unique set of needs, driving history, car type and budget.

Where can I buy car insurance in Newfoundland?

You can purchase car insurance from a number of private companies in Newfoundland. These include The Co-operators, Economical, Allstate, Aviva and all of the providers listed in our analysis above (plus many more). You’ll also be able to apply for insurance with any large bank in Canada, though your insurance premiums will typically be higher with these providers.

It’s easy to compare several quotes at one time by signing up with an online third-party broker. You can also choose to compare prices manually by contacting the insurance companies you’re working with individually. Just be aware that you may end up having to deal with pushy salespeople if you choose to go this route.

Minimum provincial requirements for car insurance in Newfoundland

There’s a minimum level of car insurance coverage that you’ll need to drive a vehicle in Newfoundland. This includes the following:

• Liability insurance. Covers your costs if you need to pay for the injuries or vehicle damage of another driver in an accident that’s your fault (minimum $200,000).
• Uninsured motorist protection. Pays for your medical expenses if you’re injured in a collision with an uninsured driver.

Are there eligibility requirements for car insurance in Newfoundland?

Eligibility requirements

To apply for car insurance in Newfoundland, you’ll typically need to meet the following criteria:

• Be at least 16 years old
• Have a valid Canadian driver’s licence
• Own the vehicle you wish to insure
• Be willing to purchase the minimum amount of liability coverage

How to apply

If you think you meet the eligibility criteria, you can apply for car insurance coverage with these simple steps:

1. Visit the website for the car insurance provider of your choice to submit an application for a quote online.
2. Provide the necessary documentation – such as a valid driver’s licence and proof of purchase for your vehicle.
3. Get verified and work with your car insurance provider to negotiate the terms of your car insurance if you meet the eligibility requirements.

Bottom line

Newfoundland offers mid-range rates for car insurance compared to other provinces in Canada. That said, it’s also the only province that doesn’t require you to purchase insurance to cover your own injuries in a collision that’s deemed to be your fault. You’ll usually have to pay more for these benefits – which are highly recommended – which could drive the average rate of your insurance up.

Frequently asked questions

• What's the minimum amount of insurance I can get in Newfoundland?

  The minimum amount of car insurance you’ll need in Newfoundland is $200,000 worth of third-party liability and uninsured motorist protection. You can also choose to pay more to get personal injury benefits, which come highly recommended though they are not legally required to get your vehicle on the road.

• Which car insurance company is the cheapest in Newfoundland?

  That depends on your personal situation. You may get cheaper rates with one provider if you’re under the age of 25 than you will with another provider that privileges more mature or experienced motorists. You’ll have to input all of your information and compare quotes to find the best insurance for your unique set of needs and budget.

• How much will it cost me to get extended coverage?

  You’ll usually have to pay several hundreds (if not thousands) of dollars more in premiums to add collision and comprehensive coverage to your insurance. That said, it could be worth the higher premiums if you have a new or expensive vehicle that you’d like to protect from damage.

• What kinds of discounts can I get on my car insurance?

  You’ll usually be able to get any number of discounts when you apply for coverage. For example, you could get rewarded for being a mature driver or for having winter tires for your vehicle. You could also save money by insuring multiple vehicles with the same provider – or by bundling your car insurance with your home or life insurance.

• What happens if I get into an accident in Newfoundland?

  If you get into an accident, you’ll need to touch base with your insurer to start the claims process. You may also want to document any vehicle damage and collect eyewitness statements to help your insurance company determine who’s at fault. It’s also important to get the other driver’s insurance information at the scene, and file a police report if you can.